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You've made the decision to purchase an item that is affordable only with a loan. When shopping for a loan, there are many aspects of the loans that you should examine. Which of the following questions should be asked and answered about a specific loan proposal before accepting a lender's offer? Check all that apply. Does the loan's payment date fit my budget? If I accept the loan, what is my new debt safety ratio? O What is the reason for loan? Do you need, or only want, the item being purchased? O What is the loan's APR? You're shopping for a big loan, but you have misgivings about Shen, the loan officer, at an institution you just visited. What are some reasons that may have you uneasy about accepting a loan there? Check all that apply. Shen encouraged you to shop around. Shen volunteered pertinent information that you didn't even know enough to ask about. Shen told you that the interest rate is the only important fee to worry about and that discussing the APR is an unnecessary complication. Shen gave you a range of terms and said they'll be worked out at closing. Shen went over the fine print, such as late payment charges and prepayment provisions. Your parents may be able to help you with the down payment, but Shen told you to assume they will and to enter a down payment on the application including their contribution. Shen spent most of the time emphasizing benefits of loans with balloon payments and interest-only payments. When you filled out the application, Shen said if you weren't sure about something on it, you could take the application home and complete it when you had the correct answers. What are the characteristics of your reasons for feeling uneasy about Shen the loan officer? Check all that apply. Feeling under pressure to make a decision The loan officer's embellishment of the facts The way the loan officer omitted pertinent information Your friend suggested you look into a variable-rate loan. What questions should you ask? Check all that apply. What changes after a rate adjustment,the monthly payment amount or the number of monthly payments left on the loan? What is the interest rate tied to? Can I afford the maximum possible monthly payment? How often is the rate subject to change? Given the long list of relevant loan-related considerations described above, the paradox of choice often arises when attempting to make borrowing decisions. Which of the following phrases addresses the characteristics and recommended solutions for this phenomenon? Check all that apply. Keep it simple and select the easiest or least expensive alternative Be prepared to ask for assistance Identify your goals and a framework for evaluating any trade-offs that must be made when making your decision Arises when there are too few alternatives and you wish you had more features or options to select from

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